17. SCENARIO 3-3 Laiho Industries reported the following information in its annual report: • Net income = $7.0 million. • NOPAT = $60 million. • EBITDA = $120 million. • Net profit margin = 5.0%. Laiho has a depreciation expense, but no amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10%, and the firm's tax rate is 40%. What is Laiho's depreciation expense? A) $30.0 million B) $53.0 million C) $20.0 million D) $77.1 million E) $60.0 million Points Earned: 0.0/5.0 Correct Answer(s): C 18. For managerial purposes, i.e., making decisions within the firm, the standard financial statements as prepared by accountants under Generally Accepted Accounting Principles (GAAP) rules are often used to create alternative data and metrics that provide a somewhat different picture of a firm's operations. Related to these modifications, which of the following statements is CORRECT? A)

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